Natural gas tankless water heaters

If unclear about natural gas tankless water heaters, we'll shed some light on the subject.

Before we begin, what are tankless water heaters?

A tankless water heater is an installed appliance which heats your water on demand as it flows through heating elements, while traditional hot water heaters store and continually heat a large volume of water, whether you need it or not.

Also known as instantaneous or on-demand hot water heaters because they don't store hot water but create it on demand, their increasing popularity is due to their small, compact design and energy efficiency.

Hot water heating alone accounts for 20% or more of the average United States household's annual energy costs. Conventional tanks raise the water temperature to the setting on the tank, usually between 120 and 140 degrees Fahrenheit, costing an annual average amount of $450 for the electric and $200 for the gas tank hot water heaters. Even if no hot water is drawn from the tank, the burner switches on at regular intervals to maintain the water temperature.

Demand tankless water heaters are commonly used by the rest of the world and first appeared in the United States about 25 years ago. Despite the hype surrounding these appliances, they have limitations too. Getting the right one will add joy to your life, the wrong one disappointment and unnecessary expense.

Making an informed choice means first of all deciding on whether you want whole-house or point of use water heaters; electric or propane/natural gas tankless water heaters. Do you want one sized to heat enough water for a cup of tea, or to provide hot water for two or more bathrooms? And which part of the country you live in affects how much hot water a tankless water heater can produce.

How do tankless water heaters work?

Since tankless water heaters don't have storage tanks, there is no standby heat loss (wasting energy on heating water stored in a tank) which makes them energy efficient.

Both whole-house and point of use water heaters work the same way - when a hot water tap is opened, cold water enters the heater and triggers the heating element (heat exchanger) or burners to turn on. As water flows through the heating elements it heats up. When you change the water flow, a water valve or thermostat controls the heating elements or burner flame and maintains a constant temperature. The amount of energy you use is always in proportion to the volume of hot water used, shutting down when you turn the hot water tap off.

The heat exchanger can be electric resistance heating coils or a gas fired burner using natural gas or propane. Usually natural gas tankless water heaters have more heating capacity so larger whole-house units would be gas fired.

For gas tankless water heaters the saving is typically 30% of your energy usage, saving you dollars and reducing the impact on the environment. In addition, by installing a tankless hot water heater you can also qualify for a $300 federal energy tax credit.